U.S. adults feel Americans now have greater respect for homeownership

Published 12:06 pm, Thursday, November 8, 2012

With the recession technically over, many questions have circulated about the future of housing and whether the concept of homeownership will be changed in the United States.

Psychotherapist Dr. Robi Ludwig partnered with Coldwell Banker Real Estate to explore the feelings Americans have about homeownership now, compared to before the economic downturn.

On behalf of Coldwell Banker Real Estate, an online survey conducted in April by Harris Interactive among more than 2,100 U.S. adults age 18 and older found a clear consensus: the economic downturn has had a distinct effect on the way people view homeownership, but owning a home is still the foundation of the American dream.

"After any major fallout like a financial downturn, it's natural to examine and sometimes alter the way we think about fundamental issues in our lives," Ludwig said.

"So it makes sense that this survey shows we are re-thinking what passed for conventional wisdom during the 'boom years.' Instead of taking things for granted, people are protective of their jobs, homes and futures.

"And now that we're picking up the pieces, we're seeing a psychological shift. Instead of looking at homes through the eyes of an economist, we're realizing a home doesn't solely equate to financial return or measure only to a mortgage amount. Instead the home is the emotional center of our lives, and it remains a critical component of who we are."

A majority of U.S. adults (79 percent) indicate the recession has caused society to rethink the concept of homeownership.

In fact, 84 percent of U.S. adults agree more people took owning a home for granted before the recession, and nearly three-quarters (72 percent) said they feel as if Americans have a greater respect for it now than they did before the recession.

Seventy-five (75) percent of U.S. adults agree that due to changes in the housing market and/or economy, there has been an overemphasis on the financial value of a home rather than the emotional value of a home.

"There's no doubt that housing has been in the eye of the economic storm," said Jim Gillespie, chief executive officer, Coldwell Banker Real Estate LLC. "However, our work with Dr. Ludwig underscores that Americans remain bullish on homeownership and have not forgotten the inherent, emotional reasons that make our homes precious to us - in tough times or not. People are simply and rightly being more mindful about what they need and what they can afford, and are more carefully considering when to become homeowners."

The survey indicates people are re-evaluating their needs versus wants when purchasing a home. Ninety (90) percent of U.S. adults agree some people purchased more expensive homes than they should have before the recession.

Meanwhile, 86 percent of Americans agreed people are more closely evaluating how much home they can truly afford now, compared to before the recession.

Renting a home

"Renting offers many people a suitable temporary solution, but in the long run, owning a home appeals to our innate desire for having things we can call our own, while providing a connection to the community around us," Ludwig said. "Homeownership is a commitment; it's about being rooted, which is one of our human instincts. I was encouraged to see that so many respondents recognize that commitment to a home, just like in a relationship, can often bring immense satisfaction."

The survey found homeownership is part of the American dream and the United States becoming a "rent-based" society does not appear plausible: Ninety-one (91) percent of Americans agreed owning a home is part of the American dream (93 percent of homeowners, and 89 percent of renters).

Eighty-three (83) percent of renters said they want to own a home someday. Despite the economic challenges, 94 percent of homeowners agreed they are glad they own a home.

"Homeownership provides a stable environment that is not dictated by the rules of a landlord," Ludwig said.

"We and our children flourish in secure environments. The feeling you get when you step through your front door or pull into your driveway is indescribable and priceless, and the same holds true for our children, who crave stability.

"While I know that financial hardships during the recession clearly have impacted many households, it is clear the emotional value of a home is still strongly recognized."

The survey found a high percentage (95) of parents/legal guardians agreed it is important for their children to own a home someday; and 74 percent feel it's absolutely essential/very important.

Additionally, more than three-quarters of homeowners (78 percent) said owning a home is one of their greatest achievements, and 85 percent of U.S. adults (which includes homeowners and renters) agreed they always dreamed of owning a home.

"People universally understand what it feels like to 'be at home,' and homeownership is an intrinsic element in our society," Ludwig said.

"The ability to alter colors, make cosmetic alterations and structural changes are so important to showcasing our personalities. And one of the reasons people feel so strongly connected to the home is because it is in many ways a reflection of who they are."

Seventy-one (71) percent of U.S. adults agree their home is a reflection of their identity, with homeowners being significantly more likely to agree with this statement than renters (74 percent, compared to 67 percent of renters).

The survey was conducted by Harris Interactive on behalf of Coldwell Banker Real Estate.

All data collection was done online within the United States from April 23-25, 2012, among 2,177 adults ages 18 and older (1,457 homeowners and 666 renters).